# In the matter of R.K. Silk Mills (India) Limited

> NCLT judgment dated 2 Apr 2024. Citation: TCN-2024-NCLT-01890. The Corporate Debtor, RK Silk Mills India Limited, was admitted into Corporate Insolvency…

- **Court:** NCLT
- **Order date:** 2 Apr 2024
- **Citation:** TCN-2024-NCLT-01890
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rk-silk-mills-india-limited-e1a21180

## Summary

### Background

The Corporate Debtor, RK Silk Mills India Limited, was admitted into Corporate Insolvency Resolution Process (CIRP) on November 19, 2019. Mr. Prashant Agrawal was appointed as the Interim Resolution Professional, and his appointment as Resolution Professional was confirmed on January 27, 2020. During the CIRP, no resolution plan was submitted, leading the Committee of Creditors (CoC) to conclude in its fourth meeting on June 22, 2020, that the revival of the Corporate Debtor was not feasible. Consequently, the CoC decided to liquidate the Corporate Debtor under Section 33 of the Insolvency and Bankruptcy Code, 2016, with a 100% voting share. The NCLT, Bench-IV, Delhi, then ordered the liquidation on February 21, 2022, appointing Mr. Prashant Agrawal as the Liquidator and directing the initiation of liquidation proceedings.

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## Facts

RK Silk Mills India Limited, the Corporate Debtor, was admitted into Corporate Insolvency Resolution Process (CIRP) on November 19, 2019, by Bench-IV of NCLT, Delhi. Mr. Prashant Agrawal was appointed as the Interim Resolution Professional, and his appointment as Resolution Professional was confirmed on January 27, 2020. This marked the formal commencement of the insolvency proceedings against the company.

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## Issues and analysis

### Issue 1: Whether the application for closure of the liquidation process, filed under Section 60(5) of the…

**Ratio:** When a corporate debtor is not sold as a going concern during liquidation, the liquidator…

**Reasoning:** The court reasoned that the application for closure of liquidation was not appropriate…

**Interpretation:** The court interpreted Regulation 45(3) as a specific and mandatory provision…

**Application:** In this case, the Corporate Debtor, RK Silk Mills India Limited, was not sold…

## Parties

- **Judges:** Ramalingam…; AVINASH K.…
- **Advocates:** Ankit S…; Yash Ta…

## Timeline

- **November 19, 2019 — CIRP Admi…**: RK Silk Mills India Limited (Corporate Debtor) was admitted into Corporate Insolvency…
- **January 27, 2020 — RP Confir…**: Mr. Prashant Agrawal's appointment as Resolution Professional was confirmed by the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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